Promissory Note for Rent Payment​

A promissory note is also called a payment agreement, and it sets out the terms and conditions of payment for any debt. In the case of rent payments, a promissory note may be used when the rent has not been paid for some time. For rent payment, a promissory note can be given by the landlord or the tenant. If the tenant has not paid his or her rent on time or owes back rent, the landlord may want to send a promissory note as a first step before beginning eviction procedures. The tenant may give a promissory note if they intend to pay their back rent, but are having financial difficulties and have not been able to pay on time.

Promissory notes are often written by banks, lending institutions or attorneys, but individuals can write legally binding promissory notes if all the specified information is included.

The type of promissory note for rental property is a legally binding promise to pay the rent. If the landlord sends the promissory note, and the tenant signs it, he or she is legally bound to pay the rent according to the terms and conditions set out by the landlord. If the tenant sends the promissory note and the landlord signs it, he or she must wait for payment according to the terms and conditions set out by the tenant.

The landlord should first meet with the tenant and find out when they will pay the back rent and start making regular monthly payments again. There is no point in writing a promissory note with which the tenant cannot possibly comply. The promissory note should state the due date for the back rent. This is usually on the next rental due date.

If the landlord wants the tenant to pay interest on the unpaid rent, he or she should check with their state laws or consult with an attorney. Some states allow interest to be paid, but they may limit the amount. Others may only allow interest to be paid if it was stipulated as part of the original rental agreement for late payments. Some states allow interest if the rent is more than 30 days late.

The promissory note should give the timing and method of payment. For example, the landlord may agree to installments or require payment in on lump sum. If installments are acceptable, the promissory note should state the exact dates the payments should be made and how much is each payment. It may also state the date that the back rent should be paid in full. In order for it to be valid, both the landlord and tenant must sign the promissory note and put their addresses.

Some promissory notes have a co-signer. The co-signer is legally bound to pay the debt if the tenant does not pay according to the terms and conditions in the promissory note. Promissory notes are usually prepared on a legal form, typed, and printed from a computer. Individuals can download forms or create their own. It must contain the following information:

• The date of the note• The original amount owed written in both numeric form and written in words as on a check so that there is no misunderstanding• Any interest that may be owed according to state law written in words and numerals• Any late fees that were stipulated in the original rental agreement written in words and numerals• The payment schedule for a simple promissory note is usually in one lump sum. Installment notes include a payment schedule that gives the dates each payment is due and how much the payment is• The address where the payment should be sent and the name of the landlord who will receive the money

A tenant may also want to give his or her landlord a promissory note that they will pay back rent owed and future rent on time. This may be considered as a delaying tactic in case the tenant is afraid the landlord will take them to small claims court.

This is formal notice that I will pay the back rent of NUMERIC AMOUNT, WRITTEN AMOUNT that I own you on DATE. I will pay the full amount at that time. I was unable to make my rental payments because I lost my job three months ago. I have another job and this letter is my assurance to you that I will pay my rent in full.

Thank you for your patience and consideration of my situation. If you agree, kindly sign and return a copy of this letter to me.